BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 907|
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THIRD READING
Bill No: SB 907
Author: Evans (D)
Amended: 5/3/11
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 6-2, 4/27/11
AYES: Wolk, Huff, DeSaulnier, Hancock, Hernandez, Liu
NOES: Fuller, La Malfa
NO VOTE RECORDED: Kehoe
SENATE APPROPRIATIONS COMMITTEE : 6-3, 5/26/11
AYES: Kehoe, Alquist, Lieu, Pavley, Price, Steinberg
NOES: Walters, Emmerson, Runner
SUBJECT : Master Plan for Infrastructure Financing and
Development
Commission
SOURCE : Author
DIGEST : This bill creates the 11-member Master Plan for
Infrastructure Financing and Development Commission. By
December 1, 2013, the Commission must submit a final report
to the Governor and the Legislature which contains a
long-term plan and strategy for the state's infrastructure
needs and a prioritized plan to meet those needs. The
Commission must also submit periodic progress reports.
ANALYSIS : Existing law requires the governor to annually
submit a five-year infrastructure plan to the Legislature.
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The plan must contain Identification of infrastructure
requested by agencies; aggregate funding for
transportation; infrastructure needs for K-12 education;
instructional facility needs for UC, CSU, and the Community
Colleges; and the cost of providing the infrastructure,
sources of funding, and impact on the state's debt position
This bill creates the 11-member Master Plan for
Infrastructure Financing and Development Commission. By
December 1, 2013, the Commission must submit a final report
to the Governor and the Legislature which contains a
long-term plan and strategy for the state's infrastructure
needs and a prioritized plan to meet those needs. The
Commission must also submit periodic progress reports.
The Commission dissolves 30 days after it issues its final
report. Further, this bill's provisions automatically
terminate when the Commission dissolves, unless legislators
extend the date.
The Commission's plan must:
Project population, social, and economic trends
through 2050.
Identify the type and distribution of
infrastructure needed through 2050.
Incorporate the findings of existing state
infrastructure plans and reports.
Assess the state's capital needs for infrastructure
projects through 2050, including private capital and
public financing.
Assess the availability of private and public funds
for joint projects through 2050.
Recommend a financing plan for capital needs
through 2050, by five-year intervals, along with
feasible financing methods.
The Commission must recommend a method to track the state's
infrastructure progress and periodically reassess the
master plan.
The Commission's final report must contain a plan that
identifies the types, distribution, and priority for
developing infrastructure projects through 2050, and a
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measureable process to implement this plan. The plan must
also include a process to periodically adjust these
projects to meet changing circumstances.
When developing its recommendations, the Commission must
use existing state and local reports on infrastructure
needs. This bill specifically lists:
The Governor's annual, five-year infrastructure
plan.
The State Environmental Goals and Policy Report.
The California Transportation Plan.
The sustainable communities strategies.
Greenhouse gas emissions reduction planning.
The California Water Plan.
The Commission consists of:
1.The State Treasurer or a designee with a public finance
background.
2.Six members appointed by the Governor:
A representative from organized labor.
A representative from a statewide business
organization.
A public member.
A state agency or department director.
A member with large-scale public works financing
expertise.
An economist accomplished in interpreting the
state's economy.
1.Two members appointed by the Assembly Speaker:
A member with transportation expertise.
A member with natural resources and conservation
expertise.
1.Two members appointed by the Senate Rules Committee:
A member with education infrastructure financing
expertise.
A member with housing, urban planning, or financing
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expertise.
The Governor appoints the Commission's chair who serves
full-time at a salary of up to $150,000 annually. The
Commission's vice chair is the State Treasurer (or
designee). The other Commissioner members may receive a
per diem of $50, not to exceed $300 a month, plus travel
and other expenses.
The Commission's chair appoints the executive director who
receives a salary of up to $150,000 annually. The
executive officer must examine ways to borrow staff from
state and local governments and private nonprofit
organizations, subject to the Commission's approval and
direction. The Commission can ask experts for help. The
Commission may delegate contracting authority to its staff,
subject to relevant state law.
This bill requires the Commission's products to incorporate
opportunity for public comment and participation. The
Commission's chair must appoint at least five task force
committees to assess, inventory, and report on long-term
needs and financing alternatives:
Planning and financing.
Transportation.
Housing.
Natural resources and conservation.
Education.
A Commission member may chair each task force committee
which must also include topical experts and representatives
of industry and trade groups. The chair of each task force
committee must develop a work plan with deadlines, and
convene meetings. Each task force committee's chair must
present its findings to the Commission.
This bill becomes operative only if the Legislature
appropriates funds through the Budget Act to support the
Commission. This bill declares that the Legislature will
appropriate funds for the Commission's operating costs.
This bill indicates that funds will be appropriated from
the existing California Debt and Investment Advisory
Commission fund.
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This bill contains five legislative findings and
declarations regarding California's population growth and
the need to plan for infrastructure.
Background
State law intends the Governor's Environmental Goals and
Policy Report to be a "clear framework" for statewide
functional plans and capital spending. A 1992 OPR study,
Statewide Plan Coordination in California , identified over
two dozen state functional plans that affect growth
management, including plans for coastal resources
(California Coastal Commission), energy supplies
(California Energy Commission), housing (Department of
Housing and Community Development), transportation
(Department of Transportation), and water resources
(Department of Water Resources), among others.
As part of the annual state budget proposal, the Governor
must submit a five-year infrastructure plan to the
Legislature. This annual, five-year plan must identify:
Infrastructure projects requested by state
agencies.
Transportation projects identified in the State
Transportation Improvement Program.
K-12 school infrastructure needs.
Higher education facility needs.
The plan must estimate the costs of those infrastructure
projects. The plan must also identify the criteria and
priorities for funding infrastructure, funding sources, the
effect on the state government's debt position, and
recommend specific projects for funding and capital outlay
appropriations (AB 1473, Hertzberg, 1999). The criteria
for selecting state agencies' infrastructure projects must
be consistent with the state planning priorities adopted in
2002. The State Department of Finance issued the
California Five-Year Infrastructure Plan in 2002, 2003,
2006, 2007, and 2008. The Department intends to issue a
new five-year plan in January 2012.
Governor Schwarzenegger issued the California Strategic
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Growth Plan in 2007 and 2008, laying out the state's
infrastructure requirements for the next two decades. The
2008 edition proposed $48.1 billion in general obligation
bonds and $2.3 billion in lease-revenue bonds to cover
projects through 2016.
The U.S. Census counted 37.3 million Californians in April
2010. According to a projection prepared by the State
Department of Finance in 2007, the state may reach almost
60 million residents by 2050. Not only will California's
population grow, it will also see demographic changes
involving aging, immigration, race, and ethnicity.
Settlement patterns may also change as established
communities become denser. By any measure, Californians
will need more housing and the public works that serve
them.
Prior Legislation
AB 2579 (Evans, 2010) which died in the Assembly
Appropriations Committee.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13
2013-14 Fund
New Commission $650 $350 Special*
* California Debt and Investment Advisory Commission Fund
(specified in the bill).
SUPPORT : (Per Senate Governance & Finance Committee
analysis - unable to reverify at time of writing)
State Treasurer Bill Lockyer
American Council of Engineering Companies
American Society of Civil Engineers-Region 9
Associated General Contractors of California Chapters
California Alliance for Jobs
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California Tax Reform Association
California's Coalition for Adequate School Housing
Engineering and Utility Contractors Association
Self-Help Counties Coalition
Transportation California
AGB:nl 5/27/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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